r 






Cio^d. 



^So^. 




Glass_ii^£_41_ 



u^, 




Department of the Interior, 

" Washington, April 20, 1908. 

Chairman Committee on the Public Lands, 

House of Representatives. 

Sir: 1 have the honor to submit herewith report on H. R. 19421, 
"A bill to provide for the entry and sale of public lands containing 
coal." 

It is suggested that line 3, section 1, be raodified by omitting the 
word "vacant." 

The words "declaration of intention," lines 11 and 12, section 3, 
should be modified to read "a declaratory statement of his inten- 
tion," as that is in fact the nature of the paper which is to be tiled, 
and, conforming in name to that in use under existing law, will be 
more readily understo6d b}'^ the public. 

The word " further," in line 22, section 3, should be omitted for the 
reason that said line is the first and only provision for an extension 
of time. Lines 10, 11, and 12 should be amended so as to read "and 
the payment of the classified price for the same as fixed by the Sec- 
retary of the Interior at date of the initiation of the claim, if classified, 
or at such price as he may determine, if not determined when the 
claim was initiated." This amendment is designed to secure to the 
claimant the right to purchase the land at such price as may have 
been placed thereon by classification at the^ time he initiated his 
claim, preventing the possibility of an increased price being put 
thereon by reclassification after he has opened the mine, reserving, 
however, the right of the Secretary to fix a proper price upon lands 
not classified at date of the initiation of the claim. Lines 25 and 26 
of section 4 should be modified so as to provide for the outright sale 
of not exceeding 610 acres in not more than four compact bodies, 
which need not be contiguous. The bill as submitted would permit 
of the purchase of sixteen noncontiguous 40-acre tracts, which might 
be so applied for as to render the remaining surface practically value- 
less for disposition or surround on two sides the entire 2,560 acres 
embraced in the filing. It is believed that four noncontiguous bodies 
of 160 acres each will provide ample ground for use in connection 
with the working and exploitation of the coal under any one purchase. 

A second proviso to section 4 is suggested, fixing the fees and com- 
missions to be paid to registers and receivers upon the filing of declar- 
atory statements and entry of the lands under the provisions of this 
act. The fee is fixed at $2 for each 160 acres or fractional part thereof 
embraced in the declaratory statements and the commission at 1 
per cent each for the register and receiver, not to exceed in any case, 
however, llOO. 

The addition of another section to the bill, following section 4, is 
suggested, providing that one enti*}" shall exhaust the right; also pro- 
viding for an additional entry under this law by those who, prior to 
its passage, may have exhausted their rights by the entry of the 
smaller aVea fixed by the old coal law. The right of additional entry 
has been granted to those who acquired title to less than the maxi- 

19848—09 



^^m. 



mum area under the homestead laws, and it would seem but fair, in 
view of the greath'^ increased area which may be entered under the 
bill, that the right of additional coal entry be granted. 

The fourth word, line 15, section 7, should be "after" instead of 
"of," so that the entrymen may make their final proof and thereafter 
have the lands examined in order to determine whether or not coal 
exists therein. A suspension for examination prior to final proof 
might delay same for a considerable period in some cases. 

After the word "owner," line 6, page 6, it is suggested that the 
words "or lawful claimant" be inserted. 

Section 9 of the bill practically confirms all disputed entries or 
locations made under the coal-land laws if the price therefor, as of 
the date of such entry or location, has been oi shall be paid. It 
would seem advisable to extend opportunit}'^ for relief to those who 
are under charge of acquiring coal land under other laws, or who indi- 
rectly acquired a larger area than the existing coal laws permitted, 
because the passage of this bill by Congress will recognize the fact 
that the existing coal-land laws are not practicable. Their imprac- 
ticability has helped bring about the practice of attempting to evade 
them. The culpability of such evasion is admitted. Yet if, after 
the passage of this bill, those under charge of wrongful action should 
be willing to take their land with the very considerable penalty of 
assuming all the burdens and restrictions of the new law it would 
seem proper to confirm their right to so much of the land as shall 
not exceed in area the maximum amount which might be acquired 
under this bill. 

I therefore suggest as a substitute for section 9 of the bill the 
following: 

Sec. 9. That any persons, associations, or corporations who have obtained prior to 
the passage of this act claim or title to any coal lands of the United States by alleged 
unlawful means shall, upon proof to the satisfaction of the Secretary of the Interior 
that the full coal-land price of such land as classified by said Secretary under author- 
ity of law has been paid to the United States, have their patents confirmed for not to 
exceed two thousand five hundred and sixty acres ot such coal lands if patents have 
issued, or if patents have not issued shall receive patents for not to exceed said area: 
Provided, That patent shall not issue or be confirmed for such alleged unlawful claims 
or titles unless all land in excess of two thousand five hundred and sixty acres and all 
the surface of the confirmed coal lands (except not exceeding six hundred and forty 
acres in not more than four compact bodies, which need not be contiguous) involved 
in any one such charge shall have been reconveyed to the United States free from all 
incumbrances of any nature whatsoever: Provided further, That all moneys heretofore 
paid to the Government in connection with such alleged unlawful entries, as pur- 
chase price for lands involved in any one charge, shall be credited toward the pur- 
chase price for any part of the lands embraced in said charge and retained by such 
persons, associations, or corporations under the j^rovisions of this section. 

This substituted section oflers opportunit}^ for relief and at the 
same time automatically carries with it a punishment proportioned 
to the value of the coal lands in question. For those who acquired 
the land under other than the coal-land entry, the additional price to 
be paid will be all or a great part of the classified value, while those 
who paid the minimum coal prices will only need to pay such addi- 
tional sum as will equal the classified value. It should be noted that 
the opportunity given does not prevent the confirmation of entries 
where further investigation of the facts may prove that the -entries 
were lawfully made. 

It is suggested that the provisions of the bill should be applied to 
Alaska. To this end, sections should be added providing for the fil- 

JAN 13 1910 ... ■ 



I 



It ing of declarations of intention and the making of entries for unsur- 
veyed lands; also maintaining in that district the present system of 
^ determining adverse possessory rights by the courts by inserting 
^ provisions somewhat similar to those contained in sections 2 and 3 
of the act of April 28, 1904. (33 Stat. L., 525.) In order to meet 
existing conditions and to enable those who made and are holding in 
good faith coal locations in Alaska under existing laws to combine 
their claims, a section is suggested which will permit such a combina- 
tion by bona fide locators, their heirs or assigns, so that they may 
include in a single consolidated claim not to exceed 2,560 acres of 
contiguous lands. 

Inasmuch as this bill is designed to take the place of existing laws 
relative to the public coal lands of the United States, the addition of 
a section to the bill repealing existing laws, but specifically preserving 
the right of duly qualified persons to perfect bona fide existing loca- 
tions and filings is suggested — 

Sec. 10. That all laws and parts of laws relating; to or providing for the disposition 
of the public lands of the United States containing deposits of coal are hereby 
repealed: Provided, That nothing contained in this act shall prevent qualified per- 
sons, associations, or corporations from completing and perfecting locations, filings, 
and entries made in accordance with the laws and regulations in force at the date of 
initiation of the claims. 

Although the separation of the surface from the coal and the pro- 
visi.m for the payment for the coal, reasonably proportioned to its 
actual value, and the provisions of sections 5 and 6, designed to pre- 
vent unlawful combinations or conspiracies in restraint of the mining 
or selling of goal and to give the United States a preferential right to 
purchase for the use of its army and navy such coal as ma}^ be needed, 
and the general relief to the coal claimants and operators by so in- 
creasing the area which may be purchased as to enable them to make 
the required outla}^ and development, are matters of great importance 
and warrant me in recommending the passage of this bill, I urge par- 
ticularly upon your attention a further matter which is worthy of very 
careful consideration. I believe that the coal now belonging to the 
United States should not only be saved from acquisition under the 
noncoal-land laws, as provided by the bill, but also that the coal now 
owned by the United States should be protected by the Government 
until it has all been used in an economical way. Such protection could 
be practically assured b}^ retaining in the United States the title to the 
coal itself and giving to the coal operators the right to mine it at 
reasonable rentals, or royalties, under conditions as free from burdens 
to the business interests of the operator as can be allowed consistently 
with protection of the public interests. 

This might be brought about by leasing the coal land with pro- 
vision against holding it an unreasonable time for speculative reasons, 
and particularly with security against mining in a wasteful manner. 
Such a lease should provide an annual rental per acre, which in itself 
would be a considerable security against mere speculative holding of 
the land, and in addition thereto a royalty per ton, which should be 
proportioned to the value of the coal property leased, looked at from 
the same considerations which are made the foundation of fixing 
classified prices of coal land preparatory to sale. Private owners, 
various States of the United States, and different foreign countries 
have tried the lease system with good results. This sy.stem would 



not unreasonably hamper the business development of the coal, and 
without adding an unnecessary burden to the operators would ulti- 
mately bring to the Government a much larger revenue. Further- 
more, a lease system is of distinct advantage to the smaller operators, 
who could pay for coal when developed, instead of being obliged to 
advance the full price of the coal at the time of entry. 

The natural conditions in the public lands are such as to make the 
leasing system in coal mining especially applicable to their develop- 
ment; the risks and uncertainties in many fields make leasing the safer 
system for even the large operator, while in many areas, especially in 
the lignite fields, the small cost of the necessarj^ mining plant favors, 
as doejs also the leasing system, the mining by a large number of 
small operators. 

The supplies of workable coal in most of the public-land States are 
entirely inadequate to the future needs of these great commonwealths, 
which have but begun their real development; and yet probably in no 
country is so large a part of the available supply of coal lost in mining 
as is now the case in many of these western coal fields. The chief 
purpose of the Government under the leasing sj^stem would be the 
encouragement of economic mining methods, with a view to both 
development for present needs and the perpetuation of the supplies 
to meet the needs of the future. 

This purpose can be accomplished in harmony with state laws, 
including a state tax on the mine products, and with an amount of 
federal supervision which would always be small; and even this lim- 
ited amount of inspection would be done in connection with investi- 
gations conducted with a view to helping in the development of 
increased safety and efficiency in mining. 

The United States does not look particularly to the question of 
revenue in the disposition of public lands, and the chief purpose of 
the Government in connection with these coal lands must always be 
to secure their wise and efficient development in the interest of the 
whole people of the West; but since it has devoted the proceeds 
therefrom to public purposes, such as reclamation of arid lands, it is 
reasonable to suppose that Congress would look favorably upon any 
increase in the revenue from the public land which would not retard 
its proper development. 

For the reasons given I suggest that the bill be modified so as to 
give the option of either purchasing or leasing the coal deposits, b}^ the 
insertion, after suggested section ia, of the following sections: 

4b. That if any individual or association qualified to enter coal lands under the 
provisions of this act, or a corporation duly empowered to transact business in the 
State or Territory in which the land is situated, makes application to lease coal lands, 
the Secretary of the Interior is hereby authorized to lease to such applicant not to 
exceed two thousand five hundred and sixty acres of coal land exclusive of the sur- 
face, under such terms and conditions as he may deem proper to conserve the public 
interests; and after such application for the leasing of any definite tract of coal lands 
has been received at the appropriate local land office, the coal lands thus applied for 
shall not be subject to sale under the provisions of this act during the pendency of 
such application: Provided. That the Secretary of the Interior shall require in each 
lease an annual rental per acre for the lands leased of five per centum of the classified 
price for such lands and in addition thereto such royalty as he may deem proper in 
each case, not less than one- half cent per ton nor more than five cents per ton for 
the coal actually mined. 

4c. That at the time of filing application to enter and purchase, or of the approval 
of a lease for coal lands, the entryman or lessee may purchase also, at two dollars and 
fifty cents per acre additional to the classified charge for the coal, or the rental price, 



by legal subdivisions in not more than four compact bodies, whicii need not be con- 
tiguous, not to exceed six hundred and forty acres of the surfacje of the coal lands 
entered or leased, or at his option the lessee may lease the exclusive use of such sur- 
face under terms and conditions prescribed by the Secretary of the Interior in the 
lease. 

If the above sections are inserted in the bill, the first proviso to 
section 4 of the bill should be omitted, as its provisions are embodied 
in section 4c. To carry out the suggestions relative to Alaskan coal 
lands, sections numbered 8a, 8b, 8c, and 8d may be inserted after sec- 
tion 8. A typewritten draft of the bill, embodying the suggested 
changes and additions, is inclosed. 
Very respectfully, 

James Rudolph Gakfield, 

Secretary. 

A BILL To pA)vide for the entry and sale of public lands containing coal. 

Be it enacted by the Seriate and House of Representatives of the United States of America 
in Congress assembled. That all public lands and landa included in national forests, 
containing workable deposits of coal, are hereby classified as coal lands and hereafter 
shall be disposed of only in the manner provided by this act. 

Sec. 2. That every citizen of the United States who has not acquired title to coal 
lands from the United States, or any association of persons who are thus severally 
qualified, may purchase, by legal subdivisions, not to exceed two thousand five hun- 
dred and sixty acres of s ch coal lands in contiguous, reasonably compact areas, at 
not less than ten dollars per acre, or such other and higher price as the Secretary of the 
Interior may fix after examination, having due regard to the quality of the coal, thick- 
ness, character, and depth of the coal veins, and means of transportation and accessi- 
bility to markets. But no purchase of coal lands under the provisions of this act shall 
operate to convey any right, title, or interest in or to the surface of the lands containing 
the coal thus purchased, except as hereinafter provided. 

Sec. 3. That all public lands and lands included in national forests, containing 
coal, shall be subject to exploration by persons qualified to purchase under this act, 
and any such qualified purchaser shall have, upon the payment of the sum of twenty- 
five cents per acre and the filing in the proper land office of a declaratory statement 
of his intention to enter upon the exploration, discovery, and development of coal 
upon the lands described in such declaration, not to exceed two thousand five hundred 
and sixty acres, the exclusive right for a period of one year to enter upon the said 
lands for such purposes and the preference right to purchase the same, and upon a 
proper showing to the Secretary of the Interior that the work of exploration, discovery, 
and development has been diligently carried on during the said period, and that a 
further period is necessary to determine the character of said lands and their coal 
deposits, the Secretary may grant an extension of the said rights for a period of not to 
exceed one year at any one time, or two years in all, upon the payment of twenty-five 
cents per acre for each year of such extension, and during all such periods the Secre- 
tary of the Interior may, upon application, permit the sale of such coal as may be 
mined for the purposes of development. 

Sec. 4. That application to enter and purchase all or any contiguous, reasonably 
compact portion of the lands described in any declaration of intention may be made 
at the proper land office at any time within the period of exploration, as provided in 
section three of this act, and upon proof that a workable vein of coal has been dis- 
covered upon the lands applied for and the payment of the classified price for the 
same as fixed by the Secretary of the Interior at date of the initiation of the olaina, 
if classified, or at such price ks he may determine if not classified when the claim 
was initiated, in not more than four annual installments, or upon applications to pur- 
chase under the provisions of section two of this act, the entryman shall be entitled 
to a patent to the lands applied for, including all deposits therein, excepting and 
reserving therefrom and horn the grant the surface only of said lands, except as here- 
inafter provided. The failure to make application to enter and purchase as afore- 
said or to make any one of the annual payments within six months after the same is 
due shall constitute a forfeiture of all the rights of the entryman to the land and to 
the payments already made: Provided, That the entryman shall be entitled, upon 
paying at the time of making entry the sum of two dollars and fifty cents per acre, 
in addition to the coal land price, to a patent to the surface of not to exceed six hun- 
dred and forty acres of the area entered by him, to be designated by legal subdivisions. 



and in not more than four compact bodies which need not be contiguous: Provided 
farther, That if the land entered shall be within a national forest, the entryman 
shall be entitled to a patent to the surface only of such portion of the area covered 
by his entry as in the opinion of the Secretary of the Interior may be necessary for 
the purposes of mining, marketing, and handling the coal, upon payment of the 
value of the timber which may be growing upon such land, if any, in addition to the 
sum of two dollars and fifty cents an acre for such surface: Provided further, That 
each person or association of persons filing a declaratory statement under this act 
shall, at the date of such filing, pay a fee of two dollars for each one hundred and sixty 
acres or fractional part thereof embraced in the declaratory statement, and the regis- 
ter and receiver shall each receive a commission of one per centum on all moneys 
paid as the purchase price under coal entries made under the provisions of this act: 
Provided, howerer. That the total commissions received by any register or receiver 
under any entry shall in no case exceed one hundred dollars. 

Sec. 4a. That the four preceding sections shall be held to authorize only one entry 
by the same person or association of persons, and no association of persons any mem- 
ber of which shall by entry have taken the benefit of such sections, either as an indi- 
vidual or as a member of such association, shall enter or hold any other lands under 
the provisions thereof: Provided, That entrymen who entered coal lands under exist- 
ing laws prior to the date of this act may, under the provisions of this act and sub- 
ject to its conditions, enter other lands which shall not, with the lands so already 
entered, exceed in the aggregate two thousand five hundred and sixty acres, but not 
more than one such additional entry shall be allowed to any person orassociation of per- 
sons under the provisions of this act. 

Sec 5. That title to the lands and deposits purchased under the provisions of this 
act shall be forfeited to the Ujiited States by proceedings instituted in the courts for 
that purpose, if the owaier of such title shall tacitly or otherwise enter into any con- 
tract, combination in the form of a trust, conspiracy in restraint of trade in the mining 
or selling of coal. 

Sec. 6. That the United States shall at all times have the preference right to pur- 
chase so much of the products of any mine or mines opened upon the lands sold under 
the provisions of this act as may be necessary for the use of its army or navy and at 
such reasonable and remunerative price as may be fixed by the President; but the 
producers of any coal so purchased who may be dissatisfied with the price so fixed 
shall have the right to prosecute suits against the I'f^nited States in the Court of Claims 
for the recovery of any additional sum or sums they may claim as justly due upon 
such purchase. 

Sec. 7. That the surface of all vacant and unreserved public lands classified as coal 
lands under the provisions of this act may be disposed of under the general provisions 
of the public-land laws of the United States which would be applicable to such surface 
if it were not underlaid with coal, but all patents issued under said laws for lands 
classified as coal lands or within areas known to contain coal of commercial value 
shall contain a reservation of the coal and other deposits beneath the surface, and a 
recital of the right of the coal declarator entryman to enter upon and occupy the same 
for the purpose of exploration or mining, as hereinafter provided: Provided, That 
such entryman may, if he elect, within one year after the making of final proof and 
before receiving patent, apply for an examination by officers to be designated by the 
Secretary of the Interior of the lands contained within his entry for the purpose of 
determining whether or not they contain workable deposits of coal, and if upon such 
examination it shall be determined to the satisfaction pf the Secretary that such lands 
do not contain workaV)le deposits of coal, then the patent shall issue in fee and without 
reservation. 

Sec. 8. That a coal-land declaratory statement or a purchase under this act may 
embrace in whole or in part lands the surface of which has been disposed of as pro- 
vided for in section eight, and the coal declarant shall have the right to enter upon 
such lands for the purpose of exploration, discovery, or development of coal, and the 
coal purchaser for all purposes connected with the raining, handling, and marketing 
of coal, upon the payment to tiie owner or lawful claimant of the surface of reasonable 
damages, to be determined in cast^ of disagreement between the parties in interest 
by a court of competent jurisdiction. 

Sec. 8a. That any declaratory statement of intention under this act made for 
unsurveyed lands in the district of Alaska shall be for rectangular tracts, as compact 
as possible, not exceeding in length tw4ce the width of the tract located, with north 
and south boundary lines run according to the true meridian, and shall describe the 
lands covered thereby by reference to such natural objects or monuments as will 
readily identify the same. The location of said lands shall be indicated by marking 
the corners thereof with permanent monuments, so that the boundaries may be readily 



traced. Applications to enter and purchase such hinds must be accompanied by 
copy of a plat of survey and field notes thereof made by a duly authorized United 
States deputy or mineral surveyor for the district of Alaska, duly approved by the 
surveyor-general for the district of Alaska, and such plat, field notes, and the certifi- 
cate of the surveyor must show that the boundaries of the land applied for have been 
marked by permanent monuments at every corner of the tract and at intervals of not 
to exceed one-half mile on the exterior boundaries thereof. 

Sec. 8b. Upon the filing of the plat, field notes and certificate, and of api)lication 
to purchase the coal lands under the provisions of this act, in the office of the register 
and receiver of the land district in which the lands are loc ted, the register shall 
cause notice thereof to be published at the expense of the applicant, in a newspaper 
of general circulation in the district of Alaska, published nearest the land applied 
for, for a period of sixty days, during which period of publication similar notices 
of the application and copies of the official plat of survey must be kept posted in a 
conspicuous place upon the land applied for and in the local land office. 

Sec. 8c. That during such period of publication and posting, or within six months 
thereafter, any person, association, or corporation having or asserting any adverse 
interests or claim to the tract of land or any part thereof sought to be purchased shall 
file in the land office where such application is pending, under oath, an adverse claim 
setting forth the nature and extent thereof, and shall within sixty days after the filing 
of such claim begin an action in a court of competent jurisdiction within the district 
of Alaska to determine the question of the right of possession, and prosecute the same 
with reasonable diligence to final judgment, and thereafter no patent shall issue for 
such claim until the final adjudication of the rights of the parties, or until the adverse 
claim shall have been waived or the suit dismissed. When judgment shall have been 
rendered in such proceeding, patent shall be issued in conformity with the final decree 
of the court therein: Provided, That nothing herein contained shall be so construed 
as to authorize entries to be made or title to be acquired to the shore of any navigable 
waters within said district. 

Sec. 8d. That all persons, their lawful heirs or assigns, claiming under valid loca- 
tions made prior to November twelfth, nineteen hundred and six, or in accordance 
with circular of instructions issued by the Secretary of the Interior, May sixteenth, 
nineteen hundred and seven, may consolidate their said claims or locations by includ- 
ing in a single claim, location, or purchasenot to exceed two thousand five hundred and 
sixty acres of contiguous lands not exceeding in length twice the width of the tract 
thus consolidated, and for this purpose such persons, their lawful heirs or assigns, 
may form associations or corporations, or may transfer their said claims to other quali- 
fied persons, associations, or corporations who may perfect entry of and acquire title 
to said lands, in accordance with the other provisions of law under which said loca- 
tions were originally made. 

Sec. 9. That any persons, associations, or corporations who have obtained prior to 
the passage of this act claim or title to any coal lands of the United States, by alleged 
unlawful means, shall, upon proof to the satisfaction of the Secretary of the Interior, 
that the full coal land price of such land as classified by said Secretary under author- 
ity of law, has been paid to the United States, may have their patents confirmed for 
not to exceed two thousand five hundred and sixty acres of sucb coal lands, if pat- 
ents have issued, or if patents have not issued shall receive patents for not to exceed 
said area: Provided, That patent shall not issue or be confirmed for such alleged 
unlawful claims or titles unless all land in excess of two thousand five hundred and 
sixty acres, and all the surface of the confirmed coal lands (except not exceeding six 
hundred and forty acres in not more than four compact bodies which need not be 
contiguous), involved in any one such charge, shall have been reconveyed to the 
United States free from all incumbrances of any nature whatsoever: Provided further, 
That all moneys heretofore paid to the Government in connection with such alleged 
unlawful entries, as purchase price for lands involved in any one charge, shall be 
credited toward the purchase price for any part of the lands embraced in said charge 
and retained by such persons, associations, or corporations under the provisions of 
this section. 

Sec. 10. That all laws and parts of laws relating to or providing for the disposition 
of the public lands of the United States containing deposits of coal are hereby repealed : 
Provided, That nothing contained in this act shall prevent qualified persons, associa- 
tions, or corporations from completing and perfecting locations, filings, and entries 
made in accordance with the laws and regulations in force at the date of initiation of 
the claims. 

o 



•!-'.:tuu. '*> 



